A BILL to amend and reenact section two, article five, chapter
eighteen-b of the code of West Virginia, one thousand nine
hundred thirty-one, as amended, relating to resource
allocation model and policies; allocation of appropriations;
salary and benefit increases for full-time employees.

Be it enacted by the Legislature of West Virginia:
That section two article five, chapter eighteen-b of the
code of West Virginia, one thousand nine hundred thirty-one, as
amended, be amended and reenacted to read as follows:

ARTICLE 5. HIGHER EDUCATION BUDGETS AND EXPENDITURES.

§18B-5-2. Resource allocation model and policies; allocation of
appropriations.(a) To promote the missions and achieve the goals and
objectives of the systems under their jurisdiction and to provide
information and guidance for the allocation of funding between
the two systems in an equitable manner, the governing boards, through the central office, shall develop a resource allocation
model for the allocation of general revenue funds appropriated
for the state system of higher education. In developing the
resource allocation model, the boards shall consider such factors
as peer institution information, enrollment information and such
other data as shall further an equitable distribution of general
revenue funds for higher education. The governing boards,
through the central office, shall develop the model prior to the
first day of July, one thousand nine hundred ninety-three, and
may modify the model thereafter: Provided, That such
modifications are subject to the provisions of article three-a,
chapter twenty-nine-a of this code.Each year at such time as budget information for the next
fiscal year shall beis due, each year the governing boards shall
make allocation decisions for the upcoming fiscal year in
accordance with the model then in effect and shall inform the
secretary of education and the arts of the division of the
recommended appropriation for higher education for submission to
the appropriate state agency for incorporation in the executive
budget. The governing boards shall provide such other
information as may be requested by the secretary of education and
the arts to support the allocation division. Prior to the first
day of January of each year, the governing boards shall present
this and any other appropriate information to the Legislature to support the proposed allocation of appropriation as between the
governing boards.
(b) To promote the missions and achieve the goals and
objectives of the institutions under the jurisdiction of the
board of trustees and board of directors and to provide
information and guidance for the allocation of funding among the
institutions in the separate systems in an equitable manner in
relation to their missions, goals and objectives, the board of
trustees and the board of directors shall each develop a resource
allocation policy based on comparative information which includes
the following factors:
(1) Full-time equivalent enrollment;
(2) Average state appropriations per full-time-equivalent
student at similar institutions in the southern regional
education board; and
(3) Other relevant factors.
The Legislature finds that an emergency situation exists and
therefore, the governing boards are hereby authorized to
establish by emergency rule a resource allocation policy for each
governing board prior to the first day of January, one thousand
nine hundred ninety-four. Either governing board may modify its
policy thereafter, such modification to be submitted to the
legislative oversight commission on education accountability
subject to the provisions of article three-a, chapter eighteen-a of this code.
Upon approval of the resource allocation policy, each
governing board, prior to the first day of January of each year,
shall present information to the secretary of education and the
arts and the Legislature which sets forth the allocation
decisions made by the respective governing boards for the then
current fiscal year based on the policy then in effect, and the
allocation decisions proposed for the next year, based on the
policy in effect for the next succeeding fiscal year.
(c) From appropriations to the institutional control
accounts of the respective governing boards for allocation to the
state institutions of higher education under their jurisdiction,
the governing boards shall allocate all such funds above the
amounts actually allocated from appropriations for fiscal year
one thousand nine hundred ninety-three to their respective
institutions proportional to such amounts as are indicated by
application of the resource allocation policy then in effect.For fiscal year one thousand nine hundred ninety-four, All
funds that are in excess of the funds received by the governing
boards for expenditure by the state institutions of higher
education for any fiscal year one thousand nine hundred
ninety-three shall be allocated in accordance with the governing
boards' resource allocation model and each governing board's
institutional resource allocation policy to the extent that a policy is in place, whether or not the policy has been approved
in accordance with the provisions of subsection (b) of this
section: Provided, That all funds provided by the Legislature
for salary and benefit increases shall be distributed among the
institutions in accordance with the actual full-time classified
employees and full-time faculty at each institution qualifying
for such increases.
(d) Beginning with fiscal year one thousand nine hundred
ninety-five, each governing board shall apply its resource
allocation policy to existing base budgets in order to effect an
equalization of the institutional state funding differences at
twenty percent per year over a five-year period until such time
as the percentage of institutional differences as determined by
the resource allocation policy for that system are equalized.
After a five-year phase-in period, all appropriations to the
institutional accounts of the respective governing boards shall
be allocated to their respective institutions proportional to
such amounts as are indicated by application of the resource
allocation policy for that system.
(e) From appropriations for the higher education governing
boards, the governing boards shall jointly allocate funds for the
operation of the central office under the senior administrator
and shall share equally the cost of suitable offices for the
senior administrator and other staff in Charleston.
(f) Any tuition and registration fee collections paid into
tuition and registration fee special capital improvement funds
and special revenue bond funds which accrue in excess of the
amounts necessary to protect the interests of all holders of
obligations for which such fees were pledged by the board of
regents and shall remain pledged under the governing boards,
shall be allocated to each governing board in proportion to the
amounts of such fees collected through the institutions under
its jurisdiction and shall be deposited in special capital
improvement funds in the state treasury under the name of the
governing board for expenditure for capital improvements at the
institutions under the appropriate board's jurisdiction.

NOTE: The purpose of this bill is to distribute among
higher education institutions all funds allocated by the
Legislature for salary and benefit increases in accordance with
the actual full-time classified employees and full-time faculty.

Strike-throughs indicate language that would be stricken
from the present law, and underscoring indicates new language
that would be added.